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Indiana is one step closer to banning sweepstakes casinos after House Bill 1052 cleared a conference committee and received final approval from both legislative chambers last week.
The bill, which targets online games using dual- or multi-currency systems to bypass traditional gambling laws, passed the House 68-21 and the Senate 46-4 on Feb. 26. It now moves to Gov. Mike Braun for his signature.
Legislative path of Indiana’s ban on sweepstakes casinos
The legislation initially passed the House in early February by an 86-12 vote and the Senate a week later by a 37-8 vote. However, the House formally dissented after the Senate added technical amendments to remove language already covered in separate legislation.
Rep. Ethan Manning, R-Logansport, the bill’s sponsor and conference committee chairman, noted that while he dissented to facilitate these technical corrections, the core intent of the bill remains unchanged: to classify sweepstakes casinos as illegal gambling.
Industry pushback: Regulation vs. prohibition
The push for a total ban has faced significant pushback from industry advocates. Sean Ostrow, managing director of the Social Gaming Leadership Alliance (SGLA), testified that the state should regulate rather than prohibit the industry. Ostrow noted that sweepstakes have operated legally in Indiana since 2012 and estimated a regulated market could generate more than $20 million in annual tax revenue.
Patrick Fechtmeyer, co-founder of ARB Interactive, also warned that a ban might drive residents to “less regulated, less safe” offshore sites.
According to a news report by Legal Sports Report, while Sens. Ron Alting and David Niezgodski expressed initial interest in a regulatory framework, Alting confirmed that leadership in both chambers viewed regulation as a “no-go.”
“I offered the amendment for the sweepstakes which regulated and taxed it… but got a tremendous amount of feedback of ‘no go’,” Alting said during a committee hearing. “It was really going to be dead on arrival.”
Potential penalties and effective date
If signed by Gov. Braun, the law will take effect July 1, 2026. The Indiana Gaming Commission will then have the authority to issue civil penalties of up to $100,000 per violation against companies that continue to offer prohibited sweepstakes games to Indiana residents.
